Maine Underpayment of Estimated Tax

Underpayment of Estimated Tax
2023 Form 2210ME
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Form 2210ME

2023

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Underpayment of Estimated Tax
by Individuals, Estates, or Trusts

Enclose with your Form 1040ME or Form 1041ME

Attachment Sequence No.12

(See instructions on back)

For calendar year 2023 or fiscal year beginning ___________________________ , 2023 and ending _____________________________ ,	 _________
Name(s) as shown on Form 1040ME or 1041ME

Your SSN or EIN (do not enter / or -)

Part I — Calculating Your Underpayment
1.

2023 tax. (Form 1040ME - line 24 minus lines 25c, 25d, and 25e or Form 1041ME - line 6 minus any refundable
_
tax credit included on Form 1041ME, line 7c.)................................................................................................................................ 1._______________

2.

Multiply tax on line 1 by 90% (66 2/3% for farmers and persons who fish commercially)............................................................... 2._______________

3.

2023 Maine Income Tax Withheld. (Form 1040ME, line 25a, or Form 1041ME, line 7a.) .............................................................. 3._______________

4.

Subtract line 3 from line 1. If the result is less than $1,000, do not complete or file this form......................................................... 4._______________

5.

2022 tax. (2022 Form 1040ME, line 24 minus lines 25c, 25d, and 25e or 2022 Form 1041ME, line 6 minus any refundable tax credit
included on Form 1041ME, line 7c.) If short year, enter the amount from line 2. If less than $1,000, do not complete or file this form.... 5._______________

6.

Enter line 2 or line 5, whichever is less........................................................................................................................................... 6._______________

7.

Multiply the amount on line 6 by .25 (to compute the amount for line 9). Enter result here............................................................ 7._______________

8.

Due dates for estimated tax payments...................................................... 8.

9.

Estimated tax due. Enter amount from line 7 above or line 25 of
annualized worksheet under each payment due date................................ 9.

	
A
April 18, 2023	

B
June 15, 2023	

C
Sept. 15, 2023	

D
Jan. 16, 2024

10. Less tax payments.
a.	Tax withheld. Enter 25% (0.25) of line 3 in each column.................... 10a.
b.	Estimated tax paid by due date on line 8...........................................10b.
c. Amount carried forward (overpaid) from line 11b, previous column.
For column A, enter credit carried forward from previous tax year....... 10c.
d.	Total. Add lines 10a, 10b, and 10c.....................................................10d.
11. Subtract line 10d from line 9 (may be a negative amount)....................... 11.
a.	If line 9 is larger than line 10d, enter the underpayment here.......... 11a.
b.	If line 10d is larger than line 9, enter overpayment here................... 11b.
Part II — Calculating the Penalty — For Quarters with entries on line 11a
12. Enter date of payment of the underpayment on line 11a or the 15th
day of the fourth month after close of taxable year, whichever is earlier.. 12.
13. Number of months from due date of installment (line 8) to date shown
on line 12. A part of a month is considered a whole month...................... 13.
14. Enter the rate from the table on next page............................................... 14.
15. Underpayment Penalty — Multiply underpayment on line 11a by the
rate on line 14........................................................................................... 15.
16. Total of amounts shown on line 15. Enter result here and on Form 1040ME, line 34b or Form 1041ME, line 8b........................ 16._______________
(If zero, do not file this form. However, if you used the annualized income installment method, you must file this form even if the penalty amount is zero.)
17. Check here and on Form 1040ME, line 34b or Form 1041ME, line 8b, if you use the annualized income installment method...................... 17.	

FORM 2210ME INSTRUCTIONS
Purpose of Form. Use this form to see if you must pay a penalty for underpaying your estimated tax or paying your estimated
tax late. Use Part I to see if you paid enough estimated tax on time. If you did not, use Part II to calculate the penalty on any
underpayment.
Who Must Pay the Underpayment Penalty? In general, you will owe an underpayment penalty if your 2023 tax liability less
allowable credits and withholding is $1,000 or more and your 2022 tax liability before tax credits, income tax withholding
or any other tax payment(s) for the tax year was $1,000 or more. Note: Maine law disallows the use of the election to pay
estimated tax based on the prior year’s tax liability when an unusual event occurs, such as realization of a large, one-time
capital gain. You must pay 90% of the tax on the unusual event income for the installment period during which the unusual
event occurs. An unusual event occurs when taxable income for the estimated tax installment period exceeds the taxable
income received during the same period in the prior tax year by at least $500,000. If you received unusual event income
during any estimated tax installment period beginning in 2023, you must adjust the estimated tax due on line 9 of
this form for that period.
You will not owe an underpayment penalty or need to file this form if your 2023 tax liability reduced by allowable credits and
Maine income tax withheld is less than $1,000, or your 2022 tax liability was less than $1,000. Even though you are required
to file this form, you will avoid the underpayment penalty if you paid at least 90% of the 2023 tax on time.
Farmers and Persons who fish commercially. If you are a farmer or person who fishes commercially who files an income
tax return and pays the tax liability in full on or before March 1 of the following year, no penalty is due.
Payment Method. Individuals must make four (4) equal installment payments of estimated tax unless they can document
the actual liability for each required installment of estimated tax.
	
Use the actual liability method if your income varied during the year because, for example, you own a seasonal business
or the majority of your income was received in one payment. Using this method may lower or eliminate the amount of your
quarterly estimated tax payments. To calculate your actual liability, complete the Annualized Installment Worksheet for each
payment due date and check the box on line 17 on this form and on Form 1040ME, line 34b or Form 1041ME, line 8b.
	Note: Forms are available at www.maine.gov/revenue/tax-return-forms.
Computation of Underpayment Penalty. Calculate the penalty on the amount of the underpayment of each installment for
the period of underpayment. The penalty rate for calendar year 2023 is .5833% per month or fraction thereof, compounded
monthly. For calendar year 2024, the penalty rate is .8333% per month or fraction thereof, compounded monthly. Enter on
line 14 the appropriate rate from the table below that corresponds to the number of months shown on line 13. Multiply the
underpayment on line 11a by the rate on line 14 and enter the result on line 15. Do not calculate the penalty for the 4th
required payment if the tax return for the taxable year is filed and the tax is paid in full by January 31.
Fiscal-year filers may not use the table below.
	
Number of months
	
shown on line 13	
1	2	3	4	5	6	7	8	9	10	11	
12
	
	

Enter this rate on
line 14, column A	 .005833	.011701	.017602	.023538	 .029509	.035514	.041555 .047631	 .056361	.065164	.074040	.082991		

	
	

Enter this rate on
line 14, column B	 .005833	 .011701	 .017602	 .023538	 .029509	.035514	 .044144 .052845	 .061619	 .070465	

	
	
	
	

Enter this rate on
line 14, column C	 .005833	 .011701	 .017602	 .026082	 .034633	.043255	 .051949
Enter this rate on		
line 14, column D	 .008333	 .016736	 .025209